How to apply for mortgage online

Online mortgage loan application process

The mortgage loan application process can be a simple process, although the paperwork is can be lengthy. Those with high credit scores can expect a quick decision and a low interest rate.

Credit Scores

Those with credit scores greater than 760 can expect a quick and easy loan process. The mortgage loan officer may ask a few questions that can be handled over the phone. The closing meeting usually takes less than three months, and consumers usually have the option to ask that the closing costs be rolled into the loan, therefore having to pay nothing up front. Those with credit scores between 660 and 759 may expect a higher interest rate, and perhaps more questions from the loan officer. Generally, a score of 520 or below means that a mortgage loan may be denied.

Information Required

A mortgage application requires information regarding your income, job situation, the property you hope to finance, your assets, and your expenses. Much of this information will also show on your credit bureau report, so be sure to be as accurate as possible. Loan officers responsible for approving the loan generally ask that you provide paycheck stubs, tax records, and property appraisal documents.

What Happens Once You're Approved

Once a loan is approved, the loan officer will request a property valuation by an independent appraiser. The cost of the appraisal is borne by the applicant, but is often rolled into the loan's closing costs. Once the appraisal affirms the property value, the loan officer is assured that the loan does not exceed the value of the property. The consumer, loan officer, and closing company will then all attend the "closing" where the consumer signs the loan application and other documents affirming that the consumer agrees to pay the loan in full over the agreed-upon time period.